Despite the underperformance of fixed income we discuss in this Spotlight guide why the value proposition of the asset class hasn't gone away. In particular we review how the RLAM management team use existing, proven funds to actively manage consistent monthly income streams and adapt the portfolio to changing interest rate and credit market factors.

Within this guide, you will find some surprising survey results from FE, a selection of adviser opinions and some Architas views too. We hope this guide will provide you with some food for thought on this burning issue.

FTSE climbs to 2 1/2 year-high

The FTSE 100 index started the week with a 2 ½ year-high this morning, thanks mainly to British Airways, after oil prices fell again and profit forecasts from Irish rival Ryanair lifted other budget airlines.

The FTSE 100 gained 34 points or 0.7% to 4866.8 - its highest level since June 2002 – within the first two hours of trading after the price of Brent crude oil fell to $44.20 a barrel.

This lifted confidence in airlines in general, but has so far been of most benefit to British Airways which is currently up 3% to 268p.